IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-3p1193-1209.html
   My bibliography  Save this article

A Systematic Literature Review of Risk Management in the Islamic Banking System: Research Agenda and Future Directions

Author

Listed:
  • Md Alamgir Hossain

    (IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia)

  • Romzie Rosman

    (IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia)

  • Nasrin Jahan

    (independent Researcher, Dhaka, Bangladesh)

  • Shahana Afroz

    (Kulliyyah Of Economics & Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia)

  • Kaniz Afroza

    (Kulliyyah Of Economics & Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia)

Abstract

In the evolving landscape of global finance, effective risk management within the Islamic banking system has garnered significant attention. This paper presents a systematic literature review that explores the research agenda and future directions in risk management practices specific to Islamic banking. Utilizing the PRISMA framework, a total of 43 relevant articles published between 2004 and 2024 were meticulously selected from the Scopus database and analyzed. The review highlights a diverse range of methodologies, with 34 articles employing quantitative approaches, 7 utilizing qualitative methods, and 2 incorporating mixed methods. The findings indicate a strong predominance of quantitative research, suggesting a critical need for further exploration of qualitative and mixed-method studies to achieve a more comprehensive understanding of risk management in Islamic banking. Additionally, the analysis identifies a significant gap in the literature regarding innovative risk management strategies that align with the unique principles of Islamic finance. This review serves as a vital resource for researchers, practitioners, and policymakers aiming to enhance their understanding of risk management within the Islamic banking sector. By synthesizing existing literature and pinpointing areas for future research, this paper contributes to the ongoing discourse on effective risk management in Islamic finance.

Suggested Citation

  • Md Alamgir Hossain & Romzie Rosman & Nasrin Jahan & Shahana Afroz & Kaniz Afroza, 2025. "A Systematic Literature Review of Risk Management in the Islamic Banking System: Research Agenda and Future Directions," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(3), pages 1193-1209, March.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-3:p:1193-1209
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-3/1193-1209.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/a-systematic-literature-review-of-risk-management-in-the-islamic-banking-system-research-agenda-and-future-directions/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hassan, M. Kabir & Alshater, Muneer M. & Hasan, Rashedul & Bhuiyan, Abul Bashar, 2021. "Islamic microfinance: A bibliometric review," Global Finance Journal, Elsevier, vol. 49(C).
    2. Shailesh Rastogi & Arpita Sharma & Geetanjali Pinto & Venkata Mrudula Bhimavarapu, 2022. "A literature review of risk, regulation, and profitability of banks using a scientometric study," Future Business Journal, Springer, vol. 8(1), pages 1-17, December.
    3. Salma Rhanoui & Khalid Belkhoutout, 2019. "Risks Faced by Islamic Banks: A Study on the Compliance Between Theory and Practice," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(2), pages 137-146, April.
    4. Syed Alamdar Ali Shah & Raditya Sukmana & Bayu Arie Fianto, 2021. "Efficiencies in Islamic banking: a bibliometric and theoretical review," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 32(4), pages 458-501.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hanan Qudah & Sari Malahim & Rula Airout & Mohammad Alomari & Aiman Abu Hamour & Mohammad Alqudah, 2023. "Islamic Finance in the Era of Financial Technology: A Bibliometric Review of Future Trends," IJFS, MDPI, vol. 11(2), pages 1-29, June.
    2. Muneer M. Alshater & Mayank Joshipura & Rim El Khoury & Nohade Nasrallah, 2023. "Initial Coin Offerings: a Hybrid Empirical Review," Small Business Economics, Springer, vol. 61(3), pages 891-908, October.
    3. Goodell, John W. & Oriani, Marco Ercole & Paltrinieri, Andrea & Patel, Ritesh, 2023. "The importance of ABS 2 journals in finance scholarship: Evidence from a bibliometric case study," Finance Research Letters, Elsevier, vol. 55(PA).
    4. Özlem O. Akdeniz & Hussein A. Abdou & Ali I. Hayek & Jacinta C. Nwachukwu & Ahmed A. Elamer & Chris Pyke, 2024. "Technical efficiency in banks: a review of methods, recent innovations and future research agenda," Review of Managerial Science, Springer, vol. 18(11), pages 3395-3456, November.
    5. Odeh Al-Jayyousi & Evren Tok & Shereeza Mohamed Saniff & Wan Norhaniza Wan Hasan & Noora Abdulla Janahi & Abdurahman J. Yesuf, 2022. "Re-Thinking Sustainable Development within Islamic Worldviews: A Systematic Literature Review," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    6. Khan, Ashraf & Goodell, John W. & Hassan, M. Kabir & Paltrinieri, Andrea, 2022. "A bibliometric review of finance bibliometric papers," Finance Research Letters, Elsevier, vol. 47(PA).
    7. Miroslav Mateev & Muhammad Usman Tariq & Ahmad Sahyouni, 2023. "Efficiency, market concentration and bank performance during the COVID-19 outbreak: Evidence from the MENA region," PLOS ONE, Public Library of Science, vol. 18(5), pages 1-34, May.
    8. Yasmeen Ansari & Mansour Saleh Albarrak & Noorjahan Sherfudeen & Arfia Aman, 2022. "A Study of Financial Literacy of Investors—A Bibliometric Analysis," IJFS, MDPI, vol. 10(2), pages 1-16, May.
    9. Hassan, M. Kabir & Alshater, Muneer M. & Atayah, Osama F., 2021. "Twenty-nine years of the Journal of International Review of Economics and Finance: A scientometric overview (1992–2020)," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 1106-1125.
    10. Pattnaik, Debidutta & Hassan, M. Kabir & Dsouza, Arun & Tiwari, Aviral & Devji, Shridev, 2023. "Ex-post facto analysis of cryptocurrency literature over a decade using bibliometric technique," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    11. Pana, Elisabeta, 2023. "A bibliometric review of liquidity creation," Research in International Business and Finance, Elsevier, vol. 64(C).
    12. Jesika Ghatode & Gopi Nimbarte, 2025. "Global research pathways in rural microfinance: a bibliometric study based on web of science and Scopus database," Future Business Journal, Springer, vol. 11(1), pages 1-16, December.
    13. Mª Celia López-Penabad & José Manuel Maside-Sanfiz & Yousif Agha & Ana Iglesias-Casal, 2024. "Microfinance Institutions and Corporate Social Responsibility. A scientometric study," Future Business Journal, Springer, vol. 10(1), pages 1-25, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-3:p:1193-1209. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.